The JSE remained in the red by noon on Friday, but managed to come off the morning’s lowest levels, generally following international markets, which continued to fall in volatile and uncertain trade.
In opening trade on Friday, the local market opened more than 4% lower and within minutes fell by more than 5%.
The JSE, however, managed to fare better than international markets, which continued to plummet.
Earlier in the day, traders said there was complete volatility and lack of confidence in the market.
“The market is still down but has come off earlier levels,” a trader said. “We can expect the market to remain in the red for the rest of the day. I think we can, however, expect a sell-off later in the day as the guys will not want to hold stock into the weekend, taking into consideration the current market volatility,” he pointed out.
At 12.06pm, the JSE all-share index was down 4,31%, with resources falling 4,80%. Platinum stocks dipped 8,02%. Gold stocks, the one bright spot on the market, added 9,90%.
Industrials lost 3,84%, financials were 4,19% weaker and banks shed 2,89%.
The rand was bid at 9,39 to the dollar from 9,06 when the JSE closed on Thursday, while gold was last quoted at $922,40 a troy ounce from $888,88 when the JSE last closed.
Platinum was trading at $1 014/oz from a previous close of $1 018.50/oz. Brent crude was at $78,22 per barrel, from its previous close of US$82,66.
Dow Jones Newswires reports that European stocks plunged on Friday, tracking a global stock-market rout, amid heightened anxiety about the global economy and a distressed financials sector. “The stress and illiquidity of funding markets, disorderly unwinding of leverage and the potential for recession all pose major challenges for banks,” said Huw van Steenis, head of bank research at Morgan Stanley.
At about 09.25am GMT, the Dow Jones Stoxx 600 Index was down 6,3% to 207,75, but off earlier lows of 202,27. In terms of national markets, the UK’s FTSE 100 Index fell 5,4% to 4 079,02, having earlier dropped through 4 000 for the first time since May 2003. France’s CAC-40 Index dropped 6,3% to 3 224,74, while Germany’s DAX Index tumbled 8% to 4 497,97.
On the JSE, Anglo American was down R17,11, or 7,19%, to R221 and BHP Billiton lost R13,74, or 8,48%, to R148,26.
ArcelorMittal gave up R12,63, or 11,28%, to R99,37.
Sasol lost R9,50, or 3,61%, to R253,50.
Among gold miners, AngloGold was up R14,87, or 9,12%, to R177,99 and Harmony gained R7,93, or 9,11%, to R94,93.
Gold Fields came up R9,26, or 11,91%, to R87. The gold miner earlier in the day said its attributable production for quarter one of 2009 is expected to be approximately 798 000 ounces — 2,7% lower than the guidance provided on August 1 2008, which indicated production of 820 000 ounces. This is due mainly to slower than expected build-up of production at Cerro Corona, it said.
Platinum miner Anglo Platinum plummeted R67,98, or 10,22%, to R597,02, Impala Platinum fell R10, or 7,04%, to R132 and Lonmin dropped R24,73, or 9,85%, to R226,27.
Among other miners, Kumba Iron Ore was down R6, or 4,29%, to R134, Exxaro gave up R4,88, or 7,18%, to R63,12 and Hulamin lost R1,30, or 7,74%, to R15,50.
Financial services group Old Mutual was down R1, or 8,33%, to R11 while Sanlam lost 75 cents, or 4,45%, to R16,10.
Banker Nedbank lost R4,80, or 5,16%, to R88,20, Absa gave up R3,20, or 3,28%, to R94,30, FirstRand shed 67 cents, or 4.,7%, to R14,32 and Investec lost R3,74, or 8,35%, to R41,06.
Among industrials, brewer SABMiller fell R5,52, or 3,60%, to R147,63, Bidvest shed R3, or 3,13%, to R93 and Remgro was off R7,75, or 4,36%, to R169,85.
Among telecommunications groups, MTN lost R6,55, or 6,18%, to R99,50 while Telkom (TKG) gained R2,68, or 2,47%, to R110,99. Shares in the group jumped more than 4% in early deals on Friday as investors welcomed news that it will score R22,5-billion for the sale of 15% stake in cellular operator Vodacom.